Question
Using the following data, calculate the Economic Order
Quantity (EOQ): Monthly consumption: 4000 kg Cost per kg of raw materials: ā¹2 Cost per order: ā¹60 Storage cost: 15% of the average inventory Which of the following is EOQ?Solution
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Annual Demand (D) = 4000*12 = 48000 KgĀ S = 60 H = 2*15% = 0.30
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